Which of the Following Is the Party Ordered to Pay

question 66

Multiple Choice

Which of the following is the party ordered to pay on a draft?

• A) The drawer.
• B) The drawee.
• C) The payee.
• D) The draftor.
• E) The draftee.

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Definitions:

Dividend

The distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. Dividends can be issued as cash payments, as shares of stock, or other property.

Share Repurchase

A company's buyback of its own shares from the marketplace, reducing the number of outstanding shares and potentially increasing share value.

Dividend Per Share

The amount of dividend that a company pays out to each shareholder for each share they own.

Retention Ratio

The retention ratio is a financial metric indicating the percentage of a company's profits that are reinvested in the business rather than distributed as dividends to shareholders.